Finding 39585 (2022-006)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-22
Audit: 34655
Organization: Village of Tijeras (NM)

AI Summary

  • Core Issue: The Village is not following federal grant reporting requirements, leading to significant deficiencies.
  • Impacted Requirements: Incomplete recipient share sections and untimely submission of performance progress reports violate 2 CFR Part 200 standards.
  • Recommended Follow-Up: Establish stronger internal controls and procedures for financial grant management to ensure compliance with reporting obligations.

Finding Text

2022-006 WATERSMART GRANT - REPORTING Federal Program Information Funding agency: U.S. Department of Interior, Bureau of Reclamation Title: Reclamation States Emergency Drought Relief ALN: 15.514 Award Year: 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Other Non-Compliance Condition We noted the Village is not in compliance with requirements related to the reporting of grants. During our test work, we noted the following exceptions: ? The Village did not complete the recipient share section of the federal financial reports for 1 of 2 reports tested. ? The Village did not submit semi-annual performance progress reports (PPRs) timely for 1 of the 2 reports tested. Criteria According to ?200.302 Financial management of 2 CFR Part 200, the state?s and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect The Village is not in compliance with federal reporting requirements. Cause The Village lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete.

Corrective Action Plan

Recommendation We recommend the Village review the instructions for completion of the federal financial reports with training provided to the program staff preparing and reviewing the federal financial reports to ensure submitted reports are complete and timely. Management Response Corrective Action: The Village recognizes the need for improved oversight of its grant-funded capital projects and has hired a full-time Grant Writer/Administrator who will work in conjunction with the Clerk and Finance Director to monitor grant activities, submit reports and requests for payment in a timely manner, and ensure all program requirements are met. Village staff will receive training on the reporting and administration requirements of grant-funded programs. Village staff will maintain regular communication with funding agency liaisons to ensure that required reports are prepared accurately and submitted timely. Due Date of Completion: June 2023 Responsible Party: Finance Director and Village Clerk

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 39584 2022-005
    Material Weakness
  • 616026 2022-005
    Material Weakness
  • 616027 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.514 Reclamation States Emergency Drought Relief $748,980
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $668,295
21.019 Coronavirus Relief Fund $37,346
45.129 Promotion of the Humanities_federal/state Partnership $9,953